Mr. Sebastien Pare reports

VIQ SOLUTIONS REPORT FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS

VIQ Solutions Inc. has released its unaudited financial results for the fourth quarter and full year ending Dec. 31, 2023. Results are reported in U.S. dollars and prepared in accordance with international financial reporting standards (IFRS).

"We are encouraged by our fourth quarter of 2023 results and the start to fiscal 2024 as the post pandemic industry headwinds that lingered until end of the third quarter of 2023 are abating. Revenue increased marginally during the fourth quarter of 2023 compared to the previous year after normalizing for the previously disclosed changes to the DJAG contract in Australia. We also retained a solid level of net new bookings during the quarter, and improved productivity in all regions while implementing comprehensive cost-cutting measures throughout the Company. These initiatives have not only strengthened our operational efficiency but also resulted in $2.8M of annualized cost savings going forward. Achieving these results, while remaining firmly committed to preserving our client experience and the critical migrations to our technology platform, required a well-orchestrated plan at a time when our customers are modernizing and digitizing their workflows and empowering their stakeholders to deliver and access the best transcripts possible," said Sebastien Pare, VIQ's Chief Executive Officer.

Mr. Pare added, "following the success of the migrations in other regions throughout 2023, the technology migrations in Australia are almost complete. We believe 2024 will show improved financial performance from these actions as the Company remains focused on further cost reductions, improving gross margins, and returning to positive EBITDA."

Fourth Quarter 2023 Operational Highlights

• Continued migrations of Australian court customers to NetScribe in Q4, which improved gross margin in the quarter.
• Gains seen in the insurance vertical with a new US client that ranks in the Top 5. The trend in higher volumes is expected to continue.
• Client adoption and utilization of FirstDraft are increasing.
• Gross margin in Australia improved during the fourth quarter of 2023 as we have addressed capacity and training costs that reduced margins in the third quarter of 2023. Current migration efforts in Australia may temporarily impact gross margin while adoption accelerates. Overall productivity trends remain favorable to drive further margin improvements in 2024.
• Early success from initial AU migrations shows a material improvement in gross margin percentage in the region.
• Australia's market demand remains strong reflected by improving volumes.
• Q4 Bookings1 remain strong at $1 million, demonstrating continued demand despite capacity challenges.
• As a result of our Domain Specific Language Models (DSLM's), we anticipate an increase in SaaS revenue driven by high "usability and accuracy" of the drafts we are delivering to customers.

"Exiting 2023, we delivered the directional results that we have waited two years to see. US insurance and criminal justice are trending upward and returning to pre-COVID levels in early 2024. Growth in US insurance for SaaS, translation and traditional pro edit solutions are examples of how we expect other sectors to evolve through 2024. Our Migration in Australia to our Netscribe technology is being embraced by our transcribers and is resulting in productivity gains, demonstrating that this is the right solution at the right time. The court and legal readiness initiatives we invested in throughout 2022 and 2023 provides a commercial offering in those sectors that will globally reposition this Company to disrupt how documentation is created," said Susan Sumner, VIQ's President and Chief Operating Officer.

Fourth Quarter 2023 Financial Highlights

• Revenue of $10.3 million, an increase of $0.2 million, or 1.7%, from the same period in the prior year. Excluding the DJAG contract change and impact of foreign currency exchange, the Company would have reported revenue growth over the same period in the prior year of 3%.
• Gross profit of $4.7 million, which was similar to the same period in the prior year.
• Net loss of $2.9 million, an increase of $0.8 million, from the same period in the prior year.
• Adjusted EBITDA1 of negative $0.7 million, an improvement of $0.5 million, or 45%, from the same period in the prior year.

Full Year 2023 Financial Highlights

• Revenue of $41 million, a decrease of $4.8 million, or 11%, from the same period in the prior year. Excluding the DJAG contract change and impact of foreign currency exchange, the Company would have reported revenue growth over the same period in the prior year of 2%.
• Gross profit of $18.1 million, a decrease of $3.8 million, or 17%, from the same period in the prior year. The decrease in gross margin was primarily due to the DJAG contract change, which had a reduction in volume from the high-margin DJAG contract that ended in 2022.
• Net loss of $14.3 million, an increase of $5.6 million, or 65%, for the same period in the prior year.
• Adjusted EBITDA1 was negative $4 million, an increase of $0.6 million, or 18% from the same period in the prior year. The increase in Adjusted EBITDA deficit was primarily due to the decreased gross margin reported above, as a result of the expected change in the DJAG contract, and the negative impact of foreign exchange, partially offset by decreased selling and administrative expenses.

"We continue to align our global resources to evolve into a leaner company to improve our operating performance and Adjusted EBITDA," said Alexie Edwards, VIQ's Chief Financial Officer. Improving VIQ's EBITDA performance continues to be a top priority and we have implemented a series of measures aimed at improving EBITDA performance, including further cost reductions. We are also proud that we completed a $1.2M oversubscribed private placement in February 2024 for working capital and general corporate purposes," said Alexie Edwards, VIQ's Chief Financial Officer.

1 Represents a non-IFRS measure. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Management believes non-IFRS measures, including Adjusted EBITDA and Bookings, provide supplementary information to IFRS measures used in assessing the performance of the Company's business. Please refer to the "Non-IFRS Measures" section below and the reconciliations of the non-IFRS financial measures to their most directly comparable IFRS financial measures in the tables at the end of this press release.

A copy of the Company's audited financial statements and accompanying MD&A for the year ended December 31, 2023 and 2022 (collectively, the "Financial Information") will be available under the Company's profile on SEDAR+.

Conference Call Details

VIQ will host a conference call and webcast to discuss the Financial Information on March 28, 2024 at 11:00 a.m. (Eastern time). The call will consist of updates by Sebastien Pare, VIQ's Chief Executive Officer, Alexie Edwards, VIQ's Chief Financial Officer, and Susan Sumner, VIQ's President and Chief Operating Officer, followed by a question-and-answer period.

Investors may access a live webcast of the call on the Company's website or by dialing 1-888-500-3691 (North America toll-free) or +1-646-307-1951 (international) to be connected to the call by an operator using conference ID number 4983233. Participants should dial in at least 10 minutes prior to the start of the call.

A replay of the webcast will be available on the Company's website through the same link approximately one hour after the conference call concludes.

About VIQ Solutions

VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.

We seek Safe Harbor.